Question

Weber Corporation uses the retail inventory method to estimate its inventory balances. The following information is available in June 30:

Required:
1. Compute tile inventory on June 30 using the conventional retail inventory method (lower of average cost or market). Round the cost-to-retail ratio to 3 decimal places.
2. Independent of Requirement 1, assume that the June 30 inventors’ was $80,000 at retail and that the cost-to retail ratio is 50%. I f the price level of the inventory has risen by 5% during the period, compute the cost of the June 30 inventory under the dollar-value retail LIFO method, assuming that the company adopted the method at the beginning of the year.